If you want to buy a $900, a variety of factors determine whether that’s realistic for you, including where you live, the amount you’re willing to spend on extras like entertainment, and how much your mortgage payment will cost. But, the minimum income you need to make to buy a $900 also depends on your savings and your debts.
Experts often advise that you should spend no more than one-third of your income on housing costs. That’s because mortgage payments are the most significant monthly expense. However, it’s important to consider all the costs associated with buying a house, such as property taxes and homeowner’s insurance. Also, state and local sales taxes vary widely from place to place. And, income taxes can take a big bite out of your earnings.
Another factor to consider is your total household costs, which include other living expenses such as food, childcare and medical bills. In recent years, these expenses have been increasing across the country. Fortunately, there are many budgeting tips and tricks that can help you reduce your non-housing costs.
To calculate your potential home affordability, start by using a mortgage calculator. Enter your loan amount and the mortgage term in years (not months). Then, enter your desired interest rate to estimate your monthly mortgage payments. Next, add in any mortgage fees, such as PMI or title insurance. Finally, enter your annual income to see how much you need to make to afford a $900.